The Reserve Bank of India has formed Payment Banks to facilitate more transaction and savings accounts for the underserved population who lack banking access. Payment Banks will assist those who have little or no banking access.
One of the most recent trends in the online payment world is digital payment banks. It operates differently than conventional retail banks when it comes to features and services.
The Reserve Bank of India granted the following 11 applicants the 'in-principle' permission to set up the country's payment banks on 27 November 2014. Only 6 banks are currently operating.
Features of Payment Banks
1) Payments Bank has a deposit limit of up to Rs 1 lakh rupees. At no point in time should banks go over the limit. They can accept demand deposits that are, current deposits and savings bank deposits.
2) Individuals, small companies, and other organizations can make demand deposits and bank deposits.
3) Payment Banks also offer debit card facilities along with money transactions on electronic platforms such as ECS, NEFT, and RTGS.
4) They can make payments of utility bills on behalf of customers and the general public.
5) Mobile banking can be accessed through these payment banks.
Things Payment Banks are not authorized:
1) Payment banks are not authorized to open recurring deposits and fixed deposits (time deposits).
2) Payment banks cannot undertake any lending activity
3) They are not eligible to accept NRI deposits
4) Presently, cash transaction is limited to Rs 100,000 per customer.
Airtel Payment Bank
Bharti Airtel, India's largest telecom provider, launched Airtel Payment Bank in January 2017 to support the government of India's promised cashless revolution.
Airtel Payment Bank Features
- Individuals can open a Savings account at any branch ( 5 lakh+ banking points)
- Bank customer is eligible for a free personal accident insurance cover of Rs 1 Lac
- They can earn a 3.0% rate of interest
- The savings account offers an online debit card facility.
Benefits for merchant banking:
- QR Code Scanning
- Payment to a phone number
- BHIM UPI
- Merchant Initiated Payment.
Indian Post Payment Bank
Indian Post Payment Bank (IIPB) is backed by India's post offices, they have a wide network of 1.55 lakh post offices and over 3 lakh employees to provide doorstep banking services.
Features of IIPB
You can open a zero balance saving account.
Your current post office savings account can be changed to a Payment bank savings account. That will result in a better interest rate. Aadhaar based Direct Benefit Transfer. The account can be opened with zero balance. Availability of funds at your doorstep, upon request and secure banking with QR card.
Fino Payment Bank
With a Fino Payment Bank Savings account, you can now ease your banking by taking advantage of the account's multiple benefits. Fino Payment Bank Limited was founded on April 4, 2017, under the name Fino Payments Bank Limited. They have impacted the lives of over 100 million customers over the years across over 25000 touch points in 499 districts across 28 Indian states.
Features of Fino Payment Bank
- Transfer money instantly to any bank account across India.
- You can withdraw money from ATMs around the country.
- Shop at online and offline retailers with the Fino Payment Bank debit card.
- Bank customers can earn up to 6.25% per annum by opting for Sweep account facility
- The Fino branches have ICICI ATMs installed.
- Free cash deposit limit up to Rs 25,000 per month.
- Install the BPay app on your phone for easy payments.
Paytm Payment Bank
Paytm has developed a separate, unique Passcode for each of its customers to ensure the protection of their money in Paytm bank. Every month, you will usually receive 2.75 percent interest.
Features of Paytm Payment Bank
- There are no account opening fees or minimum balance requirements with Paytm Payments Bank's Savings Account.
- Make online transactions with your free virtual card at any retailer that accepts RuPay cards.
- In Paytm Passbook, you can see your transaction and balance in real-time.
- Through the Paytm App, account holders may request a physical Debit Card.
- The bank offers a free insurance policy of up to Rs 2 lacs in the case of death or permanent complete disability.
Jio Payments Bank
The Reserve Bank of India ('RBI') has given Reliance Industries Limited in-principle approval to create a new Payments Bank under the Banking Regulation Act, 1949.
In November 2016, it joined forces with the State Bank of India to support the ambitious Payments bank capacity-building initiative for all Indians, and Jio Payments Bank Limited.
Features of Jio Payment Bank
- There is no minimum balance requirement for the Jio Payments Bank account.
- No debit card will be issued by Jio Payments Bank
- You can open a Jio Payment Bank account even without a Jio number
- Once you open a Jio Payment Bank account, you will get a Jio UPI to handle. You can define your own Jio UPI handle while opening your account.
NSDL Payments Bank
NSDL Jiffy is NSDL's Payment bank, which keeps you stable, smooth, and quick transactions across your banking experience. In October 2018, NSDL Payment Bank started operations to help the initiative to provide streamlined banking services to all Indians.
Features of NSDL Payment Bank
The minimum average monthly balance to be maintained is Rs 10,000. Free virtual debit card to make online purchases. You can request a physical debit card from your NSDL Jiffy App.
Requirement to open a Payment Bank
A minimum paid-up capital of Rs 100 crores is the most significant prerequisite for establishing a payment bank. The operational promoters must own at least 40% of the venture, with the first five years locked in. The bank's international shareholding will be controlled by the new FDI strategy.